NEW DIRECTIONAL CALL PLAYS
Direct TV - DTV - close 37.95 change -1.77 stop 35.70
DIRECTV, incorporated in 2009, is a provider of digital television entertainment in the United States and Latin America. The Company operates two direct-to-home (DTH) operating segments: DIRECTV U.S. and DIRECTV Latin America. DIRECTV Holdings LLC and its subsidiaries (DIRECTV U.S.) is the provider of DTH digital television services and the second largest provider in the multi-channel video programming distribution (MVPD). DIRECTV Latin America (DTVLA) is a provider of DTH digital television services throughout Latin America. DTVLA is comprised of: PanAmericana, which provides services in Venezuela, Argentina, Chile, Colombia, Puerto Rico and certain other countries in the region through the wholly owned subsidiary, DIRECTV Latin America, LLC (DLA LLC); the 74% owned subsidiary, Sky Brasil Servicos Ltda. (Sky Brazil); and the 41% equity method investment in Innova, S. de R.L. de C.V., (Sky Mexico).
Target(s): 39.50, 41.50
Key Support/Resistance Areas: 37.00, 36.30
Time Frame: Several weeks
Why We Like It:
DTV is a relative strength play that recently broke out of a $37.00 resistance area that should now act as support. The stock is holding an upward trend line from February which is right on its rising 50-day moving average, currently at $36.23. This should offer solid support and gives us a good reference point to place a protective stop at $35.70. If DTV trades down to near the broken resistance level near $37.00 I suggest reader initiate long positions.
Suggested Position: Buy July $37.00 CALL, current ask $2.26, estimated ask at entry $1.80
Entry on June xx
Earnings Date 8/10/10 (unconfirmed)
Average Daily Volume: 12.3 million
Listed on 6/5/10
NEW DIRECTIONAL PUT PLAYS
Apple Inc - AAPL - close 255.96 change -7.15 stop 275.00
Apple Inc. (Apple) designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players, and sells a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. In addition, the Company sells a variety of third-party Macintosh (Mac), iPhone and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and peripherals through its online and retail stores, and digital content and applications through the iTunes Store.
Target(s): $34.55, 32.15
Key Support/Resistance Areas: 272.00, 265.00, 250.00, 243.00
Time Frame: 1 to 2 weeks
AAPL has a developers conference this week. The stock typically spikes on the keynote announcement by Steve Jobs then struggles the next couple of weeks. Apple has stubbornly refused to give up much ground and I believe the stock is due for a correction. The stock made a recent double top on the dailies and also a lower high. I would like to use $262.00 as an ideal entry point to initiate short positions. We'll use a stop of $275.00 which is above the recent highs.
Suggested Position: Buy July $250.00 PUT if AAPL trades up near $262.00, current ask $11.40, estimated ask at entry $9.50.
Entry on June xx
Average Daily Volume: 29 million
Listed on June 5, 2010